The NCUA should regulate corporate credit unions use of capital more closely to avoid a recurrence of the problems that have plagued that system, the American Bankers Association told the agency today.
ABA Senior Economist Keith Leggett urged the agency to move in an "expeditious fashion" to: ensure that its definition of capital for corporates is the same as that of other regulators of federally-insured institutions; minimum standards of permanent capital for corporates; and subject corporate credit unions to a risk-based capital standard.
To ensure the soundness of the credit union system, corporates should be subject to a minimum core capital leverage ratio and risk-based capital requirement that is comparable to banks, he added.
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